Business Ethics Chapter 4

What is the role of an ethical leader in corporate cultures?

A leader must clearly advocate and model ethical behavior.

How is an ethical, effective leader different from an effective leader?

An ethical leader will empower the employees in decision making.

Identify the correct statement about ethical leaders.

An ethical leader's traits and behaviors must be socially visible.

Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?

Compliance-based culture

Which of the following is a traditional approach to corporate culture?

Compliance-based, Compliance-based culture is a traditional approach to corporate culture.

Which of the following is an effective way of creating clear and successful reporting schemes?

Consistent and continuous communication of the firm's values to all stakeholders

Which of the following is true about corporate cultures?

Corporate cultures can hinder individuals in making the "right" decisions.

Which of the following statements is true of ethical cultures?

Employees are expected to act in responsible ways, even if the law does not require it.

When would a values-based culture rely on the personal integrity of its workforce for making decisions?

In situations where the rules of the organization do not apply

Which of the following statements is true about Whistleblowing?

It can occur both internally and externally.

Which of the following is true about the Sarbanes-Oxley Act?

It required public companies to establish a code of conduct for top executives and, if they did not have one, to explain why it did not exist.

Which of the following situations could result in the business culture becoming a determining factor in ethical decision making?

Law providing incomplete answers

Which of the following is emphasized by a compliance-based culture?

Obedience to rules as the primary responsibility of ethics

Which of the following mechanisms allows employees to report wrongdoing and to create mechanisms for follow-up and enforcement?

Ombudsman

Which of the following allows organizations to uncover silent vulnerabilities that could pose challenges later to the firm, serving as a vital element in risk assessment and prevention?

Ongoing ethics audit

Which of the following is true about culture?

Perception may actually impact the culture in a circular way.

Which of the following is true about communicating unethical behavior in a corporate structure?

Reporting individuals can face retaliation from superiors.

Which of the following directed the USSC to consider and to review its guidelines for fraud relating to securities and accounting, as well as to obstruction of justice, and specifically asked for severe and aggressive deterrents in sentencing recommendations?

Sarbanes-Oxley Act

Which of the following is an essential element in establishing an ethical leadership?

The end or objective toward which the leader leads

Which of the following should an organization do in order to have an effective compliance and ethics program?

The organization should communicate its standards and procedures to all members.

Which of the following is true about value-based cultures?

These cultures are perceived to be more flexible and far-sighted corporate environments.

Which of the following is true about ethical leaders?

They expect others to say no to them.

Which of the following statements is true about the Federal Sentencing Guidelines for Organizations?

They provide uniformity and fairness to the judiciary system.

What is the term used to describe a potentially damaging or ethically challenged corporate culture?

Toxic Culture

Which of the following is true about a compliance-based culture and/or a value-based culture?

Values-based organizations include a compliance structure.

Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?

Whistleblowing

The second step in the development of guiding principles for a firm is to:

articulate a clear vision regarding the firm's direction.

The first step in constructing a personal code or mission for a firm is to:

ask oneself what one stands for or what the firm stands for.

A(n) _____ provides concrete guidance for internal decision making creating a built-in risk management system.

code of conduct

Identify the most determinative element in integration, without which, there is no clarity of purpose, priorities, or process.

communication

The means used to motivate others and achieve one's goals plays a key role in distinguishing between:

effective leaders and ethical leaders.

As compared to a traditional compliance-oriented program, an evolved and inclusive ethics program:

entails helping to unify a firm's global operations.

Corporate culture:

is fashioned by a shared pattern of beliefs, expectations, and meanings that influence and guide the thinking and behaviors of the members of that organization.

Which of the following is true about an integrity-based culture?

it reinforces a particular set of values.

The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment.

mission statement

An effective internal mechanism of Whistleblowing:

must allow confidentiality, if not anonymity.

Which of the following is a value that will impact the culture of an organization in the absence of any other established values?

profit-at any cost

If we judge a leader solely by the results produced, we are following the _____ ethical tradition.

utilitarian

The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role, holding that their mandatory nature:

violated the Sixth Amendment right to a jury trial.

According to the _____ ethics tradition, people act out of habit than out of deliberations.

virtue